GOP reps push election spending rule change

COLUMBUS Corporations with state contracts would be allowed to spend money to try to influence elections under a provision Ohio House Republicans added this week to a budget-like bill.

The GOP-backed provision would void a rule implemented by former Ohio Secretary of State Jennifer Brunner that governs election spending by corporations, nonprofits and labor unions. The rule requires the groups to disclose when they spend money to advocate for or against the election of a candidate, such as through a statement included in a TV advertisement.

But Republicans' main issue with the rule, a spokesman said, is its prohibition of election-related spending by corporations with state or federal government contracts within one year of their receiving money from the government. That's a standard unions and nonprofits don't face, thus limiting the free speech of corporations, GOP caucus spokesman Mike Dittoe said.

Brunner created the rule after the U.S. Supreme Court in 2010 lifted restrictions on independent spending by corporations and labor unions. State Rep. Debbie Phillips, D-Albany, sought late Tuesday to keep the rule intact.

"It seems a big change to make, as we are heading into an election year," Phillips said. "It just looks very troubling on its face, that this would show up in such an abrupt and secretive way, with no public discussion and making very dramatic changes to the landscape for political expenditures by corporations and unions."

Allowing corporations receiving state money to spend money on elections "seems like it would contribute to that culture of cronyism and possible quid pro quo -- contributions in return for access to public funds," Phillips said.

Republicans tabled her attempt to keep the rule in effect. The budget-like bill, which mostly includes proposals from Gov. John Kasich's administration, sends more money to family and children services and bolsters efforts to combat drug abuse. It passed a House committee late Tuesday on a party-line vote and is expected to pass the Ohio House Wednesday.

If the rule is repealed, corporations, nonprofits and unions would still have to disclose when they're paying for election advertisements, caucus spokesman Dittoe said. That's required in Ohio law. So the cancellation of the rule would only involve the prohibition on election spending by companies with state contracts.

"We do not believe that government should be stifling the First Amendment rights of anyone," Dittoe said in an email.

A spokesman for Secretary of State Jon Husted, a Republican, said his office did not ask for the rule to be voided, nor was it a priority of Husted.

Rep. Ron Amstutz, R-Wooster, said the House Republicans want to eliminate the rule to create parity in campaign spending between corporations, which fall under the contract restriction, and unions and nonprofits.

"I think in fact we have a playing field that is not level now, and it was because of that rule," Amstutz said.

If the bill passes the House on Wednesday, as expected, it will head to the Senate for consideration later this spring, after legislators take a several-week spring break.